Bitcoin Surges By More Than $2,000 In Just Over A Day

The largest digital currency by market capitalization traded 9.5 percent higher above $8,400 as of 8:12 a.m. ET, according to CoinDesk, whose bitcoin price index tracks prices from four major exchanges. The jump marked a gain of more than $2,000 in just over a day.

The gains followed a Senate Banking Committee hearing Tuesday on virtual currencies in which the chairmen of the Securities and Exchange Commission and Commodity Futures Trading Commission emphasized consumer protection without a heavy-handed ban on development of cryptocurrencies. The chairmen also said Treasury Secretary Steven Mnuchin is bringing together several federal agencies to coordinate regulation on the fast-growing industry.

Ahead of the hearing, bitcoin fell below $6,000 to $5,947.40, its lowest since Nov. 13, amid a plunge in U.S. stocks. The S&P 500 rallied late Tuesday to close 1.7 percent higher, but stock index futures were pointing to a lower open Wednesday.